Kissimmee, Developer To Discuss Utility Costs

August 16, 1987|By Veronica T. Jennings of The Sentinel Staff

KISSIMMEE — City officials and the developer of an industrial park near the Kissimmee Municipal Airport will try Monday to resolve a dispute over who is responsible for paying utility extension costs for the development.

Last month, the city reluctantly agreed to pick up the tab for nearly $16,000 in electric extension costs for the Kissimmee Industrial Park on Airport Road.

Kissimmee also plans to spend about $525,000 for water improvements at the 120-acre park.

Acting City Manager Bob Berlinsky said Kissimmee officials still support the development, which plans to open three new buildings later this month.

However, city officials, afraid future costs could run into hundreds of thousands of dollars, want to renegotiate the terms of a 99-year lease with the park's developer, Daniel B. Webb.

The dispute stems from a 1982 lease signed by Webb and the city. Webb pays annual rental fees to the airport as part of the long-term contract.

Webb claims he doesn't have to pay the costs for extending electric, water and sewer service to the industrial park.

City officials disagree, saying Kissimmee never promised to provide free utility extensions for the development.

However, City Attorney Don Smallwood told officials they would lose a court fight with Webb over the wording in the 1982 contract.

He advised the city to declare Webb in default on the lease before agreeing to pay future electric extension costs.

To declare Webb in default, Kissimmee hopes to use a loophole in the contract that required the developer to submit a final master plan for the development.

Also at Monday's workshop, the commission will discuss the hiring of Kissimmee attorney Michael J. Barber to represent the city.

Barber, 38, wants to keep a few ''select'' corporate clients in his private practice if he is hired as the city's full-time attorney.

Some commissioners are concerned about possible conflicts if Barber retains private clients.

They also are uncertain about whether the city needs an in-house counsel or if the job can still be handled on a retainer basis.

Barber would replace Smallwood, who announced his resignation earlier this spring for personal reasons. Smallwood planned to leave Aug. 1 but has agreed to stay on until a replacement is named.

A search committee recommended Barber as the top choice among four finalists.